Business US Central Bank Holds Interest Rates Steady

Business US Central Bank Holds Interest Rates Steady

 

Barry Wood

The United States central bank, the Federal Reserve, Wednesday announced that it is holding short-term interest rates steady.

The usual Federal Reserve statement on interest rates is more optimistic than it's been for several months. It says despite slow job growth, output is expanding briskly. It calls attention to rapid productivity growth and says future economic risks are now evenly balanced between inflation and deflation.

But financial markets view the statement as suggesting modest interest rate increases are coming in the months ahead. Stock prices fell sharply on the news and bond prices fell as yields on ten-year government securities rose sharply.

But Bob Benson, an economist¹ at Bank of America in St. Louis, believes higher interest rates would not be a bad thing.

"Even if they move it up to two percent by the end of the year, that is still not restrictive. That will not crimp corporate² profits. What we're going to see, however, is that the overall economy is going to slow down as it matures from a recovery phase to more of an expansion phase."

The U.S. economy grew at an eight percent annual rate in the 3rd quarter of last year and may have expanded at a five percent rate in the October to December period.

The Federal Reserve aggressively cut interest rates in 2001 to boost economic activity in the wake of the nine-eleven terrorist attacks and overall recession. There were additional rate cuts in 2002 and 2003.

 

 

注释：

Federal Reserve  美国联邦储备系统

short-term interest rates  短期利率

briskly [briskli] adv. 活泼地，精神勃勃地

inflation [in5fleiFEn] n. 通货膨胀

deflation [dI5fleIF(E)n] n. 通货紧缩

modest [5mCdist] adj. 适度的

bond [bCnd] n. 债券

yield [ji:ld] n. 投资获利，回报

security [sI5kjJErItI] n. 有价证券，债券

restrictive [ris5triktiv] adj. 限制性的

crimp [krimp] v. 阻碍

corporate [5kC:pErit] adj. 总体国家的，全体的

recovery phase  恢复阶段

expansion phase  扩张阶段

recession [ri5seFEn] n. 不景气，（工商业）衰退

cut [kQt] n. 削减，降低

1 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

2 corporate   

adj.共同的，全体的；公司的，企业的

参考例句：

• This is our corporate responsibility.这是我们共同的责任。
• His corporate's life will be as short as a rabbit's tail.他的公司的寿命是兔子尾巴长不了。